Residential Care Facilities to Pay $44,669 in Back Wages and Liquidated Damages for Minimum Wage and Overtime Violations

Friday, November 14, 2014

Sacramento-based residential care facilities to pay 22 workers a total of $44,669 in back wages and liquidated damages. The order resolves a lawsuit filed by the U.S. Department of Labor alleging violations of the Fair Labor Standards Act at Ocampo Gacilan Home Inc., Country Elegance Inc. and Bilby Home Inc.

An investigation by the department's Wage and Hour Division found that the 24-hour care provider for adults with developmental disabilities at the three residential locations were engaged in improper pay and record-keeping practices that resulted in employees not being paid minimum wage and overtime compensation, as required by the FLSA.

The department's lawsuit alleged that Gacilan and his three residential care homes failed to pay workers the federal minimum wage because they did not pay for all hours worked or for mandatory training. The business, which provides services at facilities rather than in a family's home, also failed to pay required overtime at time and one-half the workers' regular hourly rates for hours worked beyond 40 in a workweek.

The investigation determined that 22 workers were due $31,207 in unpaid overtime and minimum wages. The court has ordered defendants to pay the workers an additional $13,462 in liquidated damages. The department's regional solicitor in San Francisco litigated the case.

The judgment requires Gacilan to take a number of proactive measures to comply with the FLSA. These measures include a requirement for him to visit each home and be present while a description of this lawsuit and judgment is read to employees in English, Spanish and Tagalog. It also requires Gacilan to provide a notice on each employee's work hours summary for every pay period.

The FLSA requires that covered employees be paid at least the minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates, for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records.